Fitch: Confirms Jinan High-tech Holdings' "BBB" Long-Term Foreign and Local Currency Issuer Ratings, Outlook Maintained at "Stable"

Rater News: On March 26, Fitch Ratings has confirmed the long-term foreign and local currency issuer default ratings of Jinan Hi-tech Holding Group Co., Ltd. (Jinan Hi-tech) at ‘BBB’ with a stable outlook.

Fitch also confirmed the ratings of the senior unsecured bonds issued by Jinan Hi-tech and the senior unsecured bonds issued by Jinan Hi-tech’s wholly-owned subsidiary, Jinan Hi-tech International (Cayman) Investment Development Co., Limited, which are guaranteed by Jinan Hi-tech, as ‘BBB’. These bonds constitute Jinan Hi-tech’s direct, unconditional, non-subordinated, and unsecured debt.

Fitch “penetrated” the direct shareholder of Jinan Hi-tech—Jinan High-tech Industrial Development Zone State-owned Assets Supervision and Administration Commission (Jinan High-tech SASAC)—to conduct a rating analysis for the company, as Fitch views Jinan Hi-tech as a public policy entity closely related to the Jinan municipal government. We believe that Jinan Hi-tech is a government-related enterprise of strategic importance in Jinan City, Shandong Province. This rating confirmation reflects Jinan Hi-tech’s important policy functions in the construction of industrial parks and related services in the Jinan High-tech Zone. The stable outlook is based on Fitch’s expectation that the company’s support score will remain stable.

Fitch assigned the rating to Jinan Hi-tech based on its “Government-Related Entities Rating Criteria,” reflecting Fitch’s assessment of the Jinan municipal government’s continued decision-making and oversight of the company and the government’s motivation for support. Moreover, this rating also considers that Fitch assessed the company’s standalone credit profile as ‘b’ based on its “Public Policy Revenue Supported Entities Rating Criteria.”